When is Wholesale Really Wholesale ?

You’ve finally found the wholesale source for the high demand widget that is selling like hotcakes on the Internet. Thoughts of watching the money pouring in and celebrating the new found success selling widgets has you so excited that you can’t wait to buy 5 widgets at wholesale and double the investment.

After a lot of effort to market your widgets, you haven’t sold any. Then, much to your surprise, you find others selling the same widget at a much lower price and doing a great business. You can blame the wholesaler for your lack of success or you can face the truth about wholesaling and volume purchasing.

So, after an unsuccessful attempt to sell widgets, you decide to do the research to find out why you couldn’t compete. The first eye opener is that you can find the widget at a number of places selling for less then your wholesale cost.

Lets look at the reasons for this.

The retailer can buy in bulk and receive quantity pricing

In many cases this also qualifies the retailer for manufacturers wholesale rebates

So it now seems that the word wholesale is a relative term. Small businesses get first level wholesale pricing. Large businesses (with great buying power) get 2nd and 3rd level wholesale pricing plus incentives. As an example, the small business may pay a price of $10 each buying wholesale widgets in quantities of 1-10. The large business may pay $5 each for the same widget in quantities of 500-1000.

So, is there any recourse for the small business?

Yes, The simple answer is Market Research.

OK, how can market research help me with wholesale buying?

The problem that needs addressing is buying widgets at to high of a price to be competitive. Plus, there are hundreds of places that sell widgets for a lot less then you can. If the demand, competition and average selling price of widgets can be determined, then you can make an informed decision about the selling potential of the widget.

That is the simplified version of the answer, but touches on the main points of market research.

You can do the research manually but by far the best bet is to use one of the existing market research tools available on the Internet. A moderate investment is required up front but the information compiled and presented is essential to profitable marketing.

A clear understanding how wholesale works in an open market along with good research can multiply your chances of successfully operating a small business. This applies to online storefronts, auction sellers, or anyone doing business from home.

Johnny Burke is a successful online seller and webmaster for E-MarketingAmerica http://www.gtsystem.net/e-commerceamerica/ offering resources and information for the online marketer

webmaster@gtsystem.net

Written by: Johnny Burke

Wholesale And Dropshipping - Your Guide To Success

If your interested in setting up your own retail business, be it online or offline, you will need to find a good wholesaler or dropshipper. Finding the right wholesaler will make all the difference to your business as being able to have a constant source of good quality stock at low prices could be the difference between success and failure. Have you ever looked at wholesale lists and found that the price is no different to what you would pay in a normal shop? Do you wonder how people on eBay make money when they sell products so cheaply? Well read on and I will tell you the best way to go about sourcing stock from a wholesaler.

The best place to start is to go directly to the manufacturer of the product that you want to sell. When you first start out in business it is unlikely that you will be able to buy direct from the manufacturer, but the important thing is that they will be able to advise you who are their official distributors, wholesalers and dropshippers. By doing this you can go direct to the official distributor rather than buy from a middle man who claims to be a wholesaler but is only purchasing from the distributor.

When dealing with wholesalers and dropshippers you will get the best results if you visit their premises in person. Do not expect to be able to view a catalogue online and order without any human contact. Most genuine wholesale businesses do not even have a website. It is important to build up a good relationship with your wholesaler. This will ensure that you get the best deals. If you can't meat them in person then at least correspond over the phone rather than email.

If your looking for discount products that are maybe 'end of line' or out of season then their are a few tactics you can try. Approach the head office of a big department store and find out what they do with these kind of products. Many will sell to specific wholesalers but if you can be persistent and find a contact at the store it is possible to start purchasing from them. Also visiting liquidation auctions can be a usefull way of making contacts. Buying some stock like this from a company whose products you want to stock will allow you to gain a contact with that company. In the future they will be likely to contact you to buy the stock before it goes to auction.

With these handy hints you will be well on your way to finding the right wholesaler or dropshipper and thus making your new business a success.

About the author:

Tina Banks writes for http://www.wholesaleadvice.com

Written by: Tina Banks